Ethereum

Just wrote 2 threads on $eth, the relationship among l1, l2s and user-Investors.

Most discussions seem to high-level discuss „something is wrong“ with the relationship because $eth Performance is Bad.

Ofc every Model needs some finetuning but current discussions are very overblown as price is mostly determined in this traders market by Investor interest, not fundamentals, and in the case of $eth by prev Investor positioning, their appetite for the next eth killer, and ultimately trader sentiment reflecting ongoing negative discussions.

The fundamentals seem pretty smart, leaning into hardcoded, well-researched pricing Models, as well as Social peer pressure among the l1 and l2s in a coopetitive environment.

Only small tweaks are needed and can mostly be directly forced by holders, user-investor behavior, and soon probably also by validators dynamically deciding on blop pricing.

Writing a blog today!

10/ Right now, Ethereum is subsidizing L2s while they extract all the upside. That’s not sustainable. Either Ethereum forces alignment now, or it risks becoming an outdated security layer for rollups that don’t need it anymore.

Who else is thinking about this?

T1: Ethereum products $Eth &amp; blockspace need demand drivers

T2: Price + yield is best ad for new investor demand; top l2s, DeFi, select Apps are sig other demand drivers

T3: onchain businesses should make Mios to pay salaries, reinvest in growth &amp; signal others to build on eth

JR ↑

@ameensol @ChainLinkGod @VitalikButerin @Etherealize_io I‘m all for charging l2s fairly but criticism of rev share in the eco is overblown.

What‘s wrong with letting free market, validators, holders decide fair blob pricing?

Peer pressure is built-in as l2s are holders, users, contributors in coopetition.

https://t.co/ws02746oIk

I don’t think crypto Investors understand the coopetition among l2s well so far.

If an l2 outperforms others, makes tons of revenues but appears parasitic instead of adding value, eth user-investors can switch to the next best l2.

Ofc l2s think about lock-in too to reduce churn

Just wrote 2 threads on $eth, the relationship among l1, l2s and user-Investors.

Most discussions seem to high-level discuss „something is wrong“ with the relationship because $eth Performance is Bad.

Ofc every Model needs some finetuning but current discussions are very overblown as price is mostly determined in this traders market by Investor interest, not fundamentals, and in the case of $eth by prev Investor positioning, their appetite for the next eth killer, and ultimately trader sentiment reflecting ongoing negative discussions.

The fundamentals seem pretty smart, leaning into hardcoded, well-researched pricing Models, as well as Social peer pressure among the l1 and l2s in a coopetitive environment.

Only small tweaks are needed and can mostly be directly forced by holders, user-investor behavior, and soon probably also by validators dynamically deciding on blop pricing.

Writing a blog today!

https://x.com/jrmr92/status/1900822586981855301

https://x.com/jrmr92/status/1900855042799739091